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Case Studies » Featured Case Studies » Case Studies » Reckitt Benckiser: Strategy, leadership and company culture - 2. Strategy

Reckitt Benckiser: Strategy, leadership and company culture - 2. Strategy

2. Strategy

RB’s strategy has always been clear: employ the right people to drive above industry-average growth and turn it into profit and cash. Ensuring this

central message is clearly communicated to all stakeholders makes good business sense. By focussing on the common goal, both shareholders and employees can be confident they understand the company’s vision and the strategy to achieve their objectives.

Employing and retaining people with the right principles and attitudes helps to create the culture and approach to business that makes RB unique.

To stay ahead of the market, RB needs creative thinking and employees who are willing to take a risk on new ideas, as well as a leadership team

prepared to support them. The range of products RB manufacture and sell is extensive. Household names such as Aerogard, Clearasil, Dettol, Mortein, Pine O Cleen and Strepsils are but a few of the easily recognisable products in Australia.

However, RB has identified 19 of their best selling products that, in their category, are globally number one or two on the market. They call these

their Powerbrands – global leaders in high growth categories. Focussing on their Powerbrands makes sense, as the profits from these 19 brands alone make up more than two-thirds of the company’s total revenue. RB invests heavily in these brands through advertising and marketing to maximise the returns and grow their market share. They also concentrate on continual innovation, listening to the needs of their customers and looking for ways to make their products better.

Another key strategy is to focus on organic growth. This refers to the development and growth of their existing Powerbrands; they only look to acquire new brands if they add significant financial or market value to the company.

Like all good businesses, RB is continually looking for ways to reduce costs. Managing costs by eliminating waste and improving efficiency contributes to their aim of turning growth into profit. Squeezing costs at every opportunity is an important aspect of cash management and is reflected in their above industry-average profits and returns for shareholders.


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Associated with:
Learning Area(s):
  • Business Environment | Developing organisational culture
  • Business Structure and Organisation | Aligning structure to objectives
  • Business Structure and Organisation | Organisational structures:overview
  • Careers | Career training and development
  • Change Management | Leadership and change
  • Communication | Interpersonal communication
  • Entrepreneurship/Innovation | Fostering innovation within business
  • Entrepreneurship/Innovation | Innovative business
  • Entrepreneurship/Innovation | Product/service innovation
  • Global Business | Types of global business/expansion
  • Human Resource Management | Diversity management
  • Human Resource Management | Employee Motivation
  • Human Resource Management | Recruitment and selection
  • Management Skills | Communication
  • Management Skills | Managing in a team environment
  • Management Skills | Role of leadership
  • Management Styles | Effective styles in management situations
  • Marketing | Product development
  • Marketing | Promotion strategies and their application
From: Edition 7

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